BOEING CO (BA) Stock Analysis

Analysis from 10-Q filed 2025-10-29. Data as of Q4 2025.

Overall Grade: F (Concerning)

BOEING CO faces challenges in financial performance that warrant careful analysis.

Metric	Value	Context
ROIC	7.3%	Below expectations
FCF Margin	-2.1%	Cash flow pressure
Debt/Equity	9.9x	Elevated debt

Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.

Explore BOEING CO: Earnings History | Filing Intelligence | ROIC Analysis

---

Profitability: BOEING CO earns 7.3% ROIC, Bottom 50% in Industrials

BOEING CO's trailing-twelve-month ROIC of 7.3% ranks Bottom 50% in Industrials companies (sector median: 7.4%), driven by NOPAT margin of 4.1% combined with asset turnover of 0.6x. Source: 10-Q filed 2025-10-29. Gross margin of 4.8% with operating margin at 4.8% reflects a competitive pricing environment.

Metric	BA	Rating	Context
Return on Invested Capital (ROIC)	7.3%	Warning	Below sector median of 7.4%
Return on Equity (ROE)	-53.6%	Red flag	Moderate equity returns
Gross Margin	4.8%	Warning	Competitive pricing environment
Operating Margin	4.8%	Warning	Moderate operational efficiency

---

Cash Flow: BOEING CO generates $-1.9B FCF at -2.1% margin, positive NaN/8 quarters

BOEING CO generated $-1.9B in free cash flow (TTM), a -2.1% FCF margin. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-29.

Metric	BA	Rating	Context
Free Cash Flow Margin	-2.1%	Red flag	Thin cash margins
Free Cash Flow (TTM)	$-1.9B	Red flag	Cash burn
OCF/Net Income	0.6x	Adequate	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: BOEING CO at 9.9x leverage

BOEING CO's debt-to-equity ratio of 9.9x reflects high leverage. Total debt of $54.1B offset by $30.1B in cash. Source: 10-Q filed 2025-10-29.

Metric	BA	Rating	Context
Debt to Equity	9.9x	Red flag	Elevated leverage
Net Cash Position	$-24.0B	Warning	Net debt position

---

Valuation: BOEING CO trades at 86.2x earnings

BOEING CO trades at a P/E of 86.2x. Free cash flow yield of -1.1% reflects market expectations for growth.

Metric	BA	Rating	Context
P/E Ratio	86.2x	Warning	Premium valuation
EV/Sales	2.2x	Good	Attractive revenue multiple
FCF Yield	-1.1%	Warning	Lower cash yield
Dividend Yield	0.2%	Adequate	Growth focus over income

---

Capital Allocation: BOEING CO returns 0.2% shareholder yield

BOEING CO's total shareholder yield is 0.2% (dividends 0.2% + buybacks). Source: 10-Q filed 2025-10-29.

Metric	BA	Rating	Context
Total Shareholder Yield	0.2%	Adequate	Dividend + buyback yield combined
Total Capital Returned (TTM)	$331.0M	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	7.3%	Bottom 50%	1.0x below
Free Cash Flow Margin	-2.1%	Bottom 10%	-0.4x below
Gross Margin	4.8%	Bottom 10%	0.1x below
Operating Margin	4.8%	Bottom 50%	0.6x below
Return on Equity (ROE)	-53.6%	Top 5%	-6.2x below
P/E Ratio	86.2x	N/A	-

---

Financial Scorecard

Metric	BA	Rating	Sector Context
Return on Invested Capital (ROIC)	7.3%	Warning	Bottom 50% of sector (median: 7.4%)
Free Cash Flow Margin	-2.1%	Red flag	Thin cash margins
Gross Margin	4.8%	Red flag	Bottom 10% of sector (median: 32.9%)
Debt to Equity Ratio	991.9%	Red flag	High financial leverage
P/E Ratio (Price-to-Earnings)	86.2x	Warning	High expectations priced in
Free Cash Flow Yield	-1.1%	Red flag	Growth-focused valuation

---

Frequently Asked Questions

Q: What is BOEING CO's Return on Invested Capital (ROIC)?

BOEING CO (BA) has a trailing twelve-month Return on Invested Capital (ROIC) of 7.3%. This compares below the sector median of 7.4%. An ROIC below 8% suggests the company may be destroying shareholder value.

Q: What is BOEING CO's Free Cash Flow Margin?

BOEING CO (BA) has a free cash flow margin of -2.1%, generating $-1.9 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.

Q: Is BOEING CO stock overvalued or undervalued?

BOEING CO (BA) trades at a P/E ratio of 86.2x, which is above the sector median of N/A. The EV/Sales multiple is 2.2x.

Q: Does BOEING CO pay a dividend?

BOEING CO (BA) currently pays a dividend yield of 0.2%. Including share buybacks, the total shareholder yield is 0.2%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.

Q: How much debt does BOEING CO have?

BOEING CO (BA) has a debt-to-equity ratio of 9.9x with total debt of $54.1 billion. Net debt position is $24.0 billion.

Q: What is BOEING CO's revenue and earnings growth?

BOEING CO (BA) grew revenue by 34.5% year-over-year. Double-digit revenue growth indicates strong demand and market share gains.

Q: How does BOEING CO compare to competitors in Industrials?

Compared to other companies in Industrials, BOEING CO (BA) shows: ROIC of 7.3% is below the sector median of 7.4% (Bottom 49%). FCF margin of -2.1% trails the sector median of 4.7%. Gross margin at 4.8% is 28.1 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.

Q: What warning signs should I watch for with BOEING CO?

Investors in BOEING CO (BA) should monitor these potential warning signs: 1) FCF margin is thin at -2.1%, leaving limited buffer for economic downturns. 2) Debt-to-equity of 9.9x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.

---

Data Source: Data sourced from 10-Q filed 2025-10-29. TTM metrics as of Q4 2025.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.